Levurn, who is married and files a joint tax return, acquired stock in a corporation that qualified as a small business corporation under 1244, at a cost of $215,000, five years ago. He sells the stock for $120,000 in the current tax year If an amount is zero, enter o" a. Levurn would have a capital loss of - 01V and an ordinary of loss of for tax purposes Feedback Check My Work In an exception to the capital treatment that generaliy results, 5 1244 permits ordinary loss treatment for losses on the sale or worthlessness of led small business corporations. By placing stareholders on a more nearly equal basis with proprietors and partners in terms of the ision encourages investment of capital in smaa corporations. Gain on the sale of 1244 stock remains capital. b. Assume instead that Levurn sold the stock b. Assume instead that Levun sold the stock to his mother Emma Smith, a year afterit was acquired for $21s and an ordinary of loss of If Emma sells the stock for $200,000 in the current year, she would have a capital loss of 0 V for tax purposes